Powerful payroll software in Xero

Pay yourself and your employees with HMRC-recognised online payroll software. Automate tax, pay and pension calculations.

HMRC requirements sorted

Simplify HMRC compliance and reporting with cloud payroll.

Automated payroll calculations

Let Xero calculate tax, pension contributions, and leave.

Employee self-service

View payslips, request leave, and submit timesheets online.

Fast pension re-enrolment

Automated re-enrolment reduces admin and saves you time.

See how online payroll streamlines tasks

HMRC requirements sorted

Xero’s payroll software is HMRC recognised and simplifies compliance with HMRC reporting requirements.

Keep accurate digital pay records
Submit payment and deduction details to HMRC each payday

Automated payroll calculations

Pay employees in just a few clicks with Xero’s payroll system. Payroll data updates your accounts automatically.

Automatic tax, pensions and leave calculations
Flexible pay calendars and pay rates
Payslips are instantly available to employees in Xero Me or can be shared securely via email

Employee pay details including type, salary, earning YTD and next payday display in Xero’s payroll software.

Employee self-service

Reduce admin and save time by giving your employees access to the Xero Me app so they can manage their own work-related admin.

Your staff can access their own payslips
They can view leave balances and submit leave requests or timesheets on the go
Authorised staff can review and approve leave requests and timesheets

Fast pension re-enrolment

Xero Payroll helps make sure you never miss your re-enrolment obligations.

Receive cyclical reminders to keep you up to date
Automatically assess and enrol employees
Secure integration with pension providers

Learn more about automating workplace pensions

An employee checks their phone to see their latest payslip.

Make CIS scheme deductions and submit returns

Use Xero accounting software to manage CIS scheme deductions, submit returns and simplify compliance.

More about payroll

: When you enable automatic enrolment and re-enrolment in Xero, eligible employees are enrolled in your workplace pension, and their contributions are calculated against their earnings. Xero enables you to connect directly to Nest and to the People’s Pension to submit your contributions electronically, or download a file to submit to another provider.
Learn more about automating workplace pensions
: Employee leave balances are automatically adjusted when a leave request is submitted and approved. Xero payroll software for small businesses comes with all the standard types of leave – plus you can set up custom leave types. Manage employee sick, maternity, paternity, shared, adoption and bereavement leave with ease in Xero Payroll.
See how to enter leave entitlements
: Once employee hours are entered into timesheets, earnings are automatically calculated. The time that’s entered on project tasks also flows into payroll timesheets.
See how to add an employee timesheet
: Give access to your employees to view payslips, request leave, or submit timesheets in the Xero Me app.
Learn more about Xero Me
: View a wide range of payroll reports to get valuable information on payroll activity, transactions, remuneration and pension contributions.
See the full list of Xero's payroll reports
: Add Xero Payroll to your Xero subscription for £5 a month for up to five payroll employees, then £1 for each additional employee per month. Sign up to try Xero Payroll free for two months after which the standard charges apply.
See the Xero pricing plans